KPMG Nigeria has raised concerns over the removal of fuel subsidies in the country, stating that it could lead to a significant increase in the inflation rate, with estimates reaching as high as 30 percent in June 2023.
According to a report by KPMG, the removal of fuel subsidies, whether implemented fully or partially, is expected to trigger a temporary surge in inflation. The National Bureau of Statistics (NBS) acknowledged the impact of the fuel subsidy removal and the unification of exchange rates, stating that it had yet to be fully reflected in the country’s headline inflation. This justifies the marginal increase observed.
